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2017 (6) TMI 736 - HC - Income TaxLiability of the assessee to pay interest on short fall of payment of advance tax - Assessee in default - Interest u/s 234B and 234C - Held that:- The computation of advance tax would be made in advance and deposited with the Government Revenue as per the provisions contained in the said chapter. In absence of the amendment in Section 43(6) of the Act, at the relevant time no liability to pay tax in case of assessee existed. Such liability arose by virtue of a subsequent amendment brought into the statute with retrospective effect. Therefore, at the relevant time when liability to pay advance tax arose, there was no short fall as per the statutory provisions prevailing. No interest can be charged on the ground that by virtue of subsequent amendment with retrospective effect the tax liability arose, the law does not expect the person to perform the impossible. This is precisely what the Division Bench of Kolkata High Court in the case of Emami Ltd. v. Commissioner of Income Tax (2011 (6) TMI 163 - CALCUTTA HIGH COURT ) had held. The assessee cannot be branded as a defaulter in payment of advance tax and it would be nevertheless asked to pay interest in terms of Section 234B and Section 234C of the Act for default in making payment of tax in advance which was physically impossible - Decided in favour of assessee. Appeal is admitted for consideration of following substantial questions of law: “Whether on the facts and circumstances of the case and in law, the ITAT was justified in restricting the disallowance made u/s.14A r.w.r 8D of the I.T.Act to ₹ 10,00,000/without appreciating that provisions of Rule 8D(2)(iii) are applicable to the assessee?”
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